Section 176 — Property Law Act 2007: Duty of mortgagee exercising power of sale

176 Duty of mortgagee exercising power of sale (1) A mortgagee who exercises a power to sell mortgaged property, including exercise of the power through the Registrar under section 187 , or through a court under section 200 , owes a duty of reasonable care to the following persons to obtain the best price reasonably obtainable as at the time of sale: (a) the current mortgagor: (b) any former mortgagor: (c) any covenantor: (d) any mortgagee under a subsequent mortgage: (e) any holder of any other subsequent encumbrance. (2) A mortgagee who exercises a power to sell mortgaged property may not become the purchaser of the mortgaged property except in accordance with section 196 or an order of a court made under section 200 . Compare: 1952 No 51 s 103A